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A couple wishes to contribute a small amount of money into their individual retirement account (IRA). The couple has two options. Option A calls for
A couple wishes to contribute a small amount of money into their individual retirement account (IRA). The couple has two options. Option A calls for a one-time deposit of $2500. Option B calls for annual deposits of $200. What range of values for the minimum attractive rate of return (MARR) exists for which option B is the preferred alternative if an infinite analysis period is assumed? (Note: The annual payments are paid in advance, that is, the payment for year one is paid at the start of year one, and so on.)
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